Silicon Metal from Brazil

Total Page:16

File Type:pdf, Size:1020Kb

Silicon Metal from Brazil A-351-850 Investigation PUBLIC DOCUMENT AD/CVD Ops VIII: RMJ DATE: October 4, 2017 MEMORANDUM TO: Gary Taverman Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance FROM: James P. Maeder Senior Director performing the duties of Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations SUBJECT: Decision Memorandum for the Preliminary Determination in the Less-Than-Fair-Value Investigation of Silicon Metal from Brazil I. SUMMARY The Department of Commerce (the Department) preliminarily determines that silicon metal from Brazil is being, or is likely to be, sold in the United States at less than fair value (LTFV), as provided in section 733 of the Tariff Act of 1930, as amended (the Act). The estimated weighted-average dumping margins are shown in the “Preliminary Determination” section of the accompanying Federal Register notice. II. BACKGROUND On March 8, 2017, the Department received an antidumping duty (AD) petition covering imports of silicon metal from Brazil,1 which was filed in proper form by Globe Specialty Metals, Inc. (the petitioner). The Department initiated this investigation on March 28, 2017.2 1 See Silicon Metal from Australia, Brazil, Kazakhstan and Norway: Antidumping and Countervailing Duty Petition,” dated March 8, 2017 (the Petition). 2 See Silicon Metal from Australia, Brazil, and Norway: Initiation of Less-Than-Fair-Value Investigations, 82 FR 16352 (April 4, 2017) (Initiation Notice). In the Initiation Notice, the Department notified the public that, where appropriate, it intended to select respondents based on U.S. Customs and Border Protection (CBP) data for the Harmonized Tariff Schedule of the United States (HTSUS) subheadings listed in the scope of the investigation.3 Accordingly, on March 29, 2017, the Department released the CBP entry data to all interested parties under an administrative protective order, and requested comments regarding the data and respondent selection.4 On April 5 and 7, 2017, the petitioner and Rima Industrial S/A (Rima) submitted comments, respectively.5 On April 10, 2017, both the petitioner and Rima submitted rebuttal comments.6 Also in the Initiation Notice, the Department notified parties of an opportunity to comment on the scope of the investigation, as well as the appropriate physical characteristics of silicon metal to be reported in response to the Department’s AD questionnaire.7 In April 2017, Elkem AS (Elkem), a Norwegian producer of silicon metal, submitted comments on the scope of the investigation,8 and the petitioner and Rima submitted rebuttal scope comments.9 In the same month, these parties also submitted comments regarding the physical characteristics of the merchandise under consideration to be used for reporting purposes,10 and the petitioner, Elkem, and Simcoa Operations Pty Ltd. (Simcoa), an Australian producer of silicon metal, filed rebuttal comments.11 On April 27, 2017, the U.S. International Trade Commission (ITC) preliminarily determined that there was a reasonable indication that an industry in the United States is materially injured by reason of imports of silicon metal from Brazil.12 Also on April 27, 2017, the Department limited the number of respondents selected for individual examination to the three publicly identifiable companies that account for the largest 3 Id. at 16355. 4 See Memorandum to the File, “Customs Data for Respondent Selection,” dated March 29, 2017 (Customs Data). 5 See Letter from the petitioner to the Department, “Re: Silicon Metal from Brazil; Antidumping Investigation; Globe Specialty Metals Comments on Respondent Selection,” dated April 5, 2017; see also, Letter to the Department from Rima, “Re: Silicon Metal from Brazil – Comments on Respondent Selection and U.S. Customs and Border Protection Data,” dated April 7, 2017. 6 See Letter from the petitioner “Re: Silicon Metal from Brazil; Antidumping Investigation; Globe Specialty Metals Rebuttal Comments on Respondent Selection,” dated April 10, 2017; see also Letter to the Department from Rima, “Re: Silicon Metal from Brazil – Rebuttal Comments on Respondent Selection,” dated April 10, 2017. 7 See Initiation Notice at 16352. 8 See Elkem Letter re: Comments on Scope of the Investigation, dated April 17, 2017. 9 See the petitioner’s Letter re: Rebuttal to Elkem Comments on Scope, dated April 27, 2017 (Petitioner’s Rebuttal Comments), and Rima’s Letter re: Rebuttal Comments on Scope, dated April 27, 2017 (Rima’s Rebuttal Comments). 10 See the petitioner’s Letter re: Comments on Product Characteristics, dated April 17, 2017; Elkem’s Letter re: Comments on Product Characteristics, dated April 17, 2017; and Rima’s Letter re: Comments on Product Characteristics, dated April 17, 2017. 11 See the petitioner’s Letter re: Rebuttal Comments on Product Characteristics, dated April 27, 2017; Elkem’s Letter re: Rebuttal Comments on Product Characteristics, dated April 27, 2017; and Simcoa’s Letter re: Rebuttal Comments on Product Characteristics, dated April 27, 2017. 12 See Silicon Metal from Australia, Brazil, Kazakhstan and Norway; Determinations, 82 FR 19383 (April 27, 2017). 2 volume of the subject merchandise during the period of investigation (POI), Dow Corning Metais do Para IND, Dow Corning Silício do Brasil Indústria e Comércio Ltda., . (Dow Corning Silício)13, and Ligas de Aluminio S.A. (LIASA), based on the Department’s analysis of the CBP entry data.14 However, Dow Corning later informed the Department that there is no longer a legal entity in Brazil operating as Dow Corning Metais do Para IND.15 Dow Corning stated that “{Dow Corning Silício } is the only Dow Corning entity in Brazil that produces and exports silicon metal.”16 On May 8, 2017, Rima filed a request that the Department reconsider its decision not to select Rima as a mandatory respondent or, in the alternative, examine Rima as a voluntary respondent.17 Rima renewed this request on May 15, 2017.18 In May and June, Rima responded to the Department’s questionnaire.19 However, on August 3, 2017, the Department determined that it would not examine Rima as either a mandatory or a voluntary respondent.20 On May 22, 2017, LIASA withdrew from participation in this investigation.21 On May 31, 2017, Dow Corning submitted a timely response to section A of the Department’s AD questionnaire (i.e., the section relating to general information).22 On June 8, 2017, Dow Corning responded to sections B, C, and D of the Department’s AD questionnaire.23 Also, in June 2017, the Department preliminarily found that a product produced by Elkem known as “Silgrain®” is within the scope of the investigation. 24 In July 2017, Elkem filed 13 For purposes of this memorandum, “Dow Corning” refers collectively to Dow Corning Silício and Dow Corning Corporation. 14 See Memorandum to Gary Taverman, “Less-Than-Fair-Value Investigation of Silicon Metal from Brazil: Respondent Selection,” dated April 27, 2017. 15 See Letter from Dow Corning to the Department, “Silicon Metal from Brazil: Section A Questionnaire Response for Dow Corning Silício do Brasil Indústria e Comércio Ltda. and Dow Corning Metais do Para IND,” dated May 30, 2017 at 8. 16 Id. at 3. 17 See Letter from Rima, “Silicon Metal from Brazil – Request for Reconsideration of Respondent Selection and Request for Voluntary Respondent Treatment,” dated May 8, 2017. 18 See Letter from Rima, “Silicon Metal from Brazil: Request for Voluntary Respondent Treatment and Response to the Department’s Questionnaire Regarding U.S. Sales,” dated May 15, 2017. 19 See e.g., Letter from Rima, “Silicon Metal from Brazil: Request for Voluntary Respondent Treatment and Section A Response” dated May 22, 2017. 20 See Memorandum to James Maeder, “Less-Than-Fair-Value Investigation of Silicon Metal from Brazil: Selection of an Additional Mandatory or Voluntary Respondent,” dated August 3, 2017. 21 See Letter from LIASA, “Silicon Metal from Brazil, C-351-851 and A-351-850,” dated May 22, 2017. 22 See Letter from Dow Corning; “Silicon Metal from Brazil: Section A Questionnaire Response for Dow Corning Silício do Brasil Indústria e Comércio Ltda. and Dow Corning Metais do Para IND,” dated May 31, 2017. 23 See Letter from Dow Corning; “Antidumping Duty Investigation of Silicon Metal From Brazil – Sections B, C, and D Questionnaire Response,” dated June 8, 2017. 24 See Memorandum, “Silicon Metal from Australia, Brazil, Kazakhstan, and Norway: Scope Comments Decision Memorandum for the Preliminary Determinations,” dated June 27, 2017, as corrected in Memorandum, “Clarifying the Comment Deadline and Correcting the Date for the Preliminary Scope Memorandum for the Anti-Dumping Investigations of Silicon Metal from Australia, Brazil, and Norway and the Countervailing Duty Investigations of Silicon Metal from Australia, Brazil, and Kazakhstan,” dated July 24, 2017 (Scope Preliminary Decision Memorandum). 2 comments on the Scope Preliminary Decision Memorandum, and in August 2017, the petitioner and Rima filed rebuttal comments.25 In July 2017, the petitioner requested that the date for the issuance of the preliminary determination in this investigation be extended until 190 days after the date of initiation. Based on the request, the Department published a postponement of the preliminary determination until no later than October 4, 2017.26 From July through September 2017, we issued supplemental questionnaires to Dow Corning covering all sections of its questionnaire
Recommended publications
  • 2019 Annual Report Annual 2019
    a force for good. 2019 ANNUAL REPORT ANNUAL 2019 1, cours Ferdinand de Lesseps 92851 Rueil Malmaison Cedex – France Tel.: +33 1 47 16 35 00 Fax: +33 1 47 51 91 02 www.vinci.com VINCI.Group 2019 ANNUAL REPORT VINCI @VINCI CONTENTS 1 P r o l e 2 Album 10 Interview with the Chairman and CEO 12 Corporate governance 14 Direction and strategy 18 Stock market and shareholder base 22 Sustainable development 32 CONCESSIONS 34 VINCI Autoroutes 48 VINCI Airports 62 Other concessions 64 – VINCI Highways 68 – VINCI Railways 70 – VINCI Stadium 72 CONTRACTING 74 VINCI Energies 88 Eurovia 102 VINCI Construction 118 VINCI Immobilier 121 GENERAL & FINANCIAL ELEMENTS 122 Report of the Board of Directors 270 Report of the Lead Director and the Vice-Chairman of the Board of Directors 272 Consolidated nancial statements This universal registration document was filed on 2 March 2020 with the Autorité des Marchés Financiers (AMF, the French securities regulator), as competent authority 349 Parent company nancial statements under Regulation (EU) 2017/1129, without prior approval pursuant to Article 9 of the 367 Special report of the Statutory Auditors on said regulation. The universal registration document may be used for the purposes of an offer to the regulated agreements public of securities or the admission of securities to trading on a regulated market if accompanied by a prospectus or securities note as well as a summary of all 368 Persons responsible for the universal registration document amendments, if any, made to the universal registration document. The set of documents thus formed is approved by the AMF in accordance with Regulation (EU) 2017/1129.
    [Show full text]
  • Annual and Sustainability Report 2020 Foto: Istockfoto: 2 | Bane NOR | Annual and Sustainability Report 2020 |
    Annual and Sustainability Report 2020 Foto: istockFoto: 2 | Bane NOR | Annual and Sustainability Report 2020 | 1. A word from the Group CEO 3 2. About us 5 2.1. This is Bane NOR 6 2.2. The rail network in numbers 2020 8 2.3. The Board of Directors of Bane NOR 10 2.4. Group structure and group management 12 2.5. Bane NOR’s strategy 14 2.6. Bane NOR’s values 16 3. Sustainability 17 3.1. Legislation and initiatives 18 3.2. UN Sustainable Development Goals 19 3.3. Stakeholder engagement and materiality analysis 21 3.4. Bane NOR’s material sustainability topic 23 3.5. Our ambition, vision and strategy for sustainability 24 4. Board of Directors’ Report 26 5. Financial statements 37 5.1. Annual financial statements, notes and accounting policies 38 3 | Bane NOR | Annual and Sustainability Report 2020 | 1. | Contents Group CEO Gorm Frimannslund, Bane NOR. Photo: Aksel Jermstad 1. A word from the Group CEO I am fortunate to be the Group CEO of a railway greenhouse gases. On my team are a group of enterprise. Trains are the safest, most efficient highly capable employees who work on complex and climate friendly means of transport there challenges across disciplines. We stand together is. We who work for Bane NOR have the chance and are driven by a strong belief that rail is the to develop solutions that ensure that children, solution to the transport needs of the future. young people and adults can get to and from Strengthening and developing train services will school, work and leisure activities.
    [Show full text]
  • Utvikling Pr. 31. Desember 2005 RAPPORT
    Norges vassdrags- og energidirektorat Telefon: 22 95 95 95 Middelthunsgate 29 Telefaks: 22 95 90 00 Postboks 5091 Majorstua Internett: www.nve.no 0301 Oslo Omsetningskonsesjonærer, organisasjons- og struktur- utvikling pr. 31. desember 2005 Kari Margrethe Fløtre Christian Johan Giswold 9 2006 RAPPORT Omsetningskonsesjonærer, organisasjons- og strukturutvikling per 31. desember 2005 Norges vassdrags- og energidirektorat 2006 Rapport nr. 9 / 2006 Omsetningskonsesjonærer, organisasjons- og strukturutvikling per 31. desember 2005 Utgitt av: Norges vassdrags- og energidirektorat Forfatter: Kari Margrethe Fløtre og Christian Johan Giswold Trykk: NVEs hustrykkeri Opplag: 50 ISSN-nr: ISBN-nr: 82-410-0599-7 Sammendrag: Denne statistiske rapporten omhandler organiseringen og virksomheten til selskap som har omsetningskonsesjon per 31. desember 2005. Det er til sammen 345 ordinære konsesjonærer med virksomhet innen produksjon, distribusjon eller omsetning av elektrisk energi. Emneord: Omsetningskonsesjonærer, virksomhet, organisering, konsentrasjon, fisjon og fusjon. Norges vassdrags- og energidirektorat Middelthuns gate 29 Postboks 5091 Majorstua 0301 OSLO Telefon: 22 95 95 95 Telefaks: 22 95 90 00 Internett: www.nve.no Mai 2006 2 Forord .................................................................................................................................................................... 4 Sammendrag .........................................................................................................................................................
    [Show full text]
  • Inflation Report 2/2004 Norges Bank’S Inflation Report
    Reports from the Central Bank of Norway No 3/2004 11 Inflation report 2 with monetary policy assessments 04 J u l y Inflation report 2/2004 Norges Bank’s Inflation Report Norges Bank’s Inflation Report is published three times a year, in February/March, June/July and October/November.Sections 1-4 of the report contain an analysis of developments in inflation, output and demand 3 years ahead. As from Inflation Report 2/04, the Executive Board’s monetary policy strategy and interest rate setting will be published in Section 5 of the Inflation Report. 2 The Inflation Report is published three times a year, and together with Financial Stability, is part of Norges Bank’s series of reports. The report is also available on Norges Bank’s website: http://www.norges-bank.no. The series of reports is included in the subscription for Economic Bulletin. To subscribe please write to: Norges Bank Subscription Service PO Box 1179 Sentrum N-0107 Oslo Norway Telephone: +47 22 31 63 83 Fax: + 47 22 41 31 05 E-mail: [email protected] Editor: Svein Gjedrem (Section 5 presents the Executive Board's assessments) Design: Grid Strategisk Design AS Setting and printing: Reclamo grafisk senter AS The text is set in 111⁄2 point Times ISSN 0807-8521 Inflation report 2/2004 Monetary policy in Norway Objective The Government has defined an inflation target for monetary policy in Norway. Norges Bank’s operational conduct of monetary policy shall be oriented towards low and stable inflation. The operational target of monetary policy shall be annual consumer price inflation of approximately 2.5 per cent over time.
    [Show full text]
  • NORWAY by Jozef Plachy 1
    THE MINERAL INDUSTRY OF NORWAY By Jozef Plachy 1 While about 25% of Norway's gross national product about 45% of total exports, followed by metals (7.7%) and (GNP) is supplied by natural resource industries (including industrial minerals, mainly dimension stone. agriculture, fisheries and forestry), only a small amount (less than 1%) is contributed by the mineral industry. Readily Structure of the Mineral Industry available hydroelectric power and ice-free ports facilitated the growth of energy intensive industries, namely production Despite recent changes, the Norwegian Government's of aluminum, ferroalloys, magnesium, and silicon metal. involvement in the mineral industry remained relatively high, However, by far the largest mineral contribution to the GNP especially in offshore hydrocarbon production. The (about 17%) is by the hydrocarbon industry. Government, through the state-owned Den norske stats oljeselskap A/S (Statoil), continued to control all production Government Policies and Programs and refining. The rest of the mineral industry was dominated by Elkem A/S and Norsk Hydro A/S. Despite rejection of membership in the European Union Elkem A/S is one of the world's leading diversified (EU), Norway has continued to liberalize its mining law. metallurgical companies with a strong hydroelectric energy The Government refunded up to 50% of the cost of base and significant global presence through its 17 plants exploration drilling, and additional grants provided up to and 26 offices on 3 continents. Elkem is publicly owned 35% of the capital cost of developing certain minerals and company in which the largest investors, Orkla, specific areas (mainly north of Trondheim).
    [Show full text]
  • Base Prospectus
    Elkem ASA – 04.06.2021 Base Prospectus Base Prospectus 04.06.2021 Elkem ASA – 04.06.2021 Base Prospectus Important notice This Base Prospectus prepared according to Regulation (EU) 2017/1129, is valid for a period of up to 12 months following its approval by Norwegian FSA. This Base Prospectus was approved by the Norwegian FSA on 04.06.2021. The prospectus for issuance of new bonds or other securities may for a period of up to 12 months from the date of the approval consist of this Base Prospectus and a Final Term to each issue. A prospective investor should consider carefully the factors set forth in chapter 1 Risk factors, and elsewhere in the Prospectus, and should consult his or her own expert advisers as to the suitability of an investment in bonds, including any legal requirements, exchange control regulations and tax consequences within the country of residence and domicile for the acquisition, holding and disposal of bonds relevant to such prospective investor. The manager and/or affiliated companies and/or officers, directors and employees may be a market maker or hold a position in any instrument or related instrument discussed in this Base Prospectus and may perform or seek to perform financial advisory or banking services related to such instruments. The managers corporate finance department may act as manager or co-manager for this Company in private and/or public placement and/or resale not publicly available or commonly known. Copies of this Base Prospectus are not being mailed or otherwise distributed or sent in or into or made available in the United States.
    [Show full text]
  • Konkurranseanalyse Av Godstransportmarkedet
    Konkurranseanalyse av godstransportmarkedet OE-rapport 2015-9 På oppdrag fra Samferdselsdepartementet Om Oslo Economics Oslo Economics utreder økonomiske problemstillinger og gir råd til bedrifter, myndigheter og organisasjoner. Våre analyser kan være et beslutningsgrunnlag for myndighetene, et informasjonsgrunnlag i rettslige prosesser, eller et grunnlag for interesseorganisasjoner som ønsker å påvirke sine rammebetingelser. Vi forstår problemstillingene som oppstår i skjæringspunktet mellom marked og politikk. Oslo Economics er et samfunnsøkonomisk rådgivningsmiljø med erfarne konsulenter med bakgrunn fra offentlig forvaltning og ulike forsknings- og analysemiljøer. Vi tilbyr innsikt og analyse basert på bransjeerfaring, sterk fagkompetanse og et omfattende nettverk av samarbeidspartnere. Konkurranseøkonomisk analyse Oslo Economics er blant de ledende konkurranseøkonomiske miljøene i Norden. Flere av våre medarbeidere er på Global Competition Reviews oversikt over verdens fremste konkurranseøkonomer og har tidligere hatt sentrale posisjoner i Konkurransetilsynet. Vi bistår i saker som behandles av nasjonale og internasjonale konkurransemyndigheter. Vår bistand inkluderer fusjoner, oppkjøp, brudd på konkurranseloven, regulerte næringer, sektoranalyser, offentlige anskaffelser og statsstøtte. Konkurranseanalyse av godstransportmarkedet © Oslo Economics 2. februar 2015 Kontaktperson: Jostein Skaar / Partner [email protected], Tel. 959 33 827 Innhold Sammendrag og konklusjoner ______________________________________________ 4 1. Innledning
    [Show full text]
  • Elkem Annual Report 2020 .Pdf
    DELIVERING YOUR POTENTIAL Annual report 2020 Highlights | Letter from the CEO | The business | The Elkem share | Board of directors’ report | Board and management | Corporate governance | ESG report | Financial statements | GHG assurance | Contact Elkem in brief Who we are Contents and what we do Highlights .................................................................4 Letter from the CEO ..............................................6 Elkem is one of the world's leading suppliers of silicon-based advanced materials with The business ............................................................8 operations throughout the value chain from Silicones ................................................................................8 quartz to specialty silicones, and attractive Silicon Products ................................................................10 market positions in specialty ferrosilicon Carbon Solutions .............................................................. 12 alloys and carbon materials. In addition to New business initiatives .................................................14 our divisions Silicones, Silicon Products and The Elkem share .....................................................16 Carbon Solutions, Elkem established the business initiatives Digital Office, Battery Board of directors’ report ..................................18 Materials and Biocarbon in 2020. Board and management ....................................34 Elkem’s global business combines Corporate governance .......................................36
    [Show full text]
  • Annual Report 2019 Crop Nutrition Company for the Future Contents
    Annual Report 2019 Crop Nutrition Company for the Future Contents 02 CEO Message About the Report 07 Strategy Review This is Yara International ASA's 2019 Annual Report. It represents Yara’s 08 How we create value first step in integrated reporting, 10 Global Megatrends building on the guiding principles set 12 Our Strategy out in the International <IR> 14 Strategic Priorities Framework from the International 22 Managing outcomes and value creation Integrated Report Council (IIRC). The 24 Engaging with stakeholder report outlines Yara's business model 25 Topics material for our value creation and strategy, describes how we create value, and documents our 29 Performance Review financial, environmental and social 30 Environmental performance performance in 2019. 32 Social performance More on integrated reporting in the 34 Financial performance inside cover in the back of the report. 40 The Yara Share 43 Risk Management 44 Risk Management 46 Risk Appetite 48 Risk Factors 54 Corporate Governance 55 Corporate Governance 66 Board of Directors 70 Executive Management 72 Directors’ Report 85 Financial statements 86 Consolidated Financial Statements 168 Financial Statement for Yara International ASA 190 Auditor's Report About Yara 241 million people fed Yara grows knowledge to responsibly feed the world and protect the planet. Our target is to help feed Supporting our vision of a world without hunger, we pursue a strategy more than 275 million of sustainable value growth, people by 2025. promoting climate-friendly and high- yielding crop nutrition solutions for the world’s farming community and food industry. 6.6% return on invested capital Yara’s ambition is to be the Crop Nutrition Company for the Future.
    [Show full text]
  • Eligible Company List - Updated 2/1/2018
    Eligible Company List - Updated 2/1/2018 S10009 3 Dimensional Services Rochester Hills, MI Supplier Employees Only S65830 3BL Media LLC North Hampton, MA Supplier Employees Only S69510 3D Systems Rock Hill, SC Supplier Employees Only S65364 3IS Inc Novi, MI Supplier Employees Only S70521 3R Manufacturing Company Goodell, MI Supplier Employees Only S61313 7th Sense LP Bingham Farms, MI Supplier Employees Only D18911 84 Lumber Company Eighty Four, PA DCC Employees Only S42897 A & S Industrial Coating Co Inc Warren, MI Supplier Employees Only S73205 A and D Technology Inc Ann Arbor, MI Supplier Employees Only S57425 A G Manufacturing Harbour Beach, MI Supplier Employees Only S01250 A G Simpson (USA) Inc Sterling Heights, MI Supplier Employees Only F02130 A G Wassenaar Denver, CO Fleet Employees Only S80904 A J Rose Manufacturing Avon, OH Supplier Employees Only S19787 A OK Precision Prototype Inc Warren, MI Supplier Employees Only S62637 A Raymond Tinnerman Automotive Inc Rochester Hills, MI Supplier Employees Only S82162 A Schulman Inc Fairlawn, OH Supplier Employees Only S78336 A T Kearney Inc Chicago, IL Supplier Employees Only D80005 A&E Television Networks New York, NY DCC Employees Only S64720 A.P. Plasman Inc. Fort Payne, AL Supplier Employees Only S36205 AAA National Office (Only EMPLOYEES Eligible) Heathrow, FL Supplier Employees Only S31320 AAF McQuay Inc Louisville, KY Supplier Employees Only S14541 Aarell Process Controls Group Troy, MI Supplier Employees Only F05894 ABB Inc Cary, NC Fleet Employees Only S10035 Abbott Ball Co
    [Show full text]
  • Foreign Exchange Risk Management
    NORGES HANDELSHØYSKOLE Bergen, June 2010 Foreign exchange risk management How are the largest non-financial companies in Norway managing their foreign exchange rate exposure? By: Krister Eriksen and Ola Wedøe MSc Thesis, Major in Financial Economics Supervisor: Associate Professor Carsten Bienz This thesis was written as a part of the Master of Science in Economics and Business Administration program - Major in Financial Economics. Neither the institution, nor the advisor is responsible for the theories and methods used, or the results and conclusions drawn, through the approval of this thesis. Abstract The purpose of this thesis is to investigate how the largest non-financial companies in Norway manage their foreign exchange rate exposure. This is investigated through the use of a survey distributed to a sample the largest non-financial firms in Norway. According to our results, the largest non-financial companies in Norway have a predefined strategy for managing foreign exchange risk, which is defined by the board of directors or by the management in the organisation. The companies’ main motivation for managing foreign exchange risk is to reduce fluctuations in income, costs or cash flow, and short term derivatives are more commonly used than derivatives with a long horizon. They also have a high degree of natural hedging, which is influenced by the number of foreign subsidiaries and the number of countries they are spread across. Those who only use operational hedging techniques have subsidiaries in more countries than those only using financial derivatives and those using both. The companies in the shipping industry use more types of derivatives than the other industries, while companies in the oil and gas industry use less.
    [Show full text]
  • Pelican Investor Presentation
    Sale of Elkem Bjørn M. Wiggen, CEO Oslo, 11 January 2011 Sale of Elkem to China National Bluestar • The transaction includes the following divisions: Silicon Materials, Foundry Products, Carbon and Elkem Solar - Does not include Elkem Energy or the 85% stake in AS Saudefaldene • Sales price: USD 2 billion* – All cash deal – Represents an estimated enterprise value for Orkla of NOK 12.5 billion • Expected closing in H1 2011 • Conditional upon approvals from the competition authorities as well as the Ministry of Commerce (MOFCOM) and State Administration of Foreign Exchange (SAFE) of the People’s Republic of China * Before closing- and capital structure adjustments 2 Sale of Elkem Elkem -a world-leading metals and materials group • 3 plants • 5 plants • Silicon, • Carbon Microsilica products • 5 plants • 1 plant • Ferrosilicon • Solar grade alloys Silicon Headquarter Plant Sales Office 3 Sale of Elkem Rationale for the transaction • In line with communicated strategy 3,000 CRU Si99 EU – Concentrate the portfolio on a smaller 2,500 CRU FeSi EU number of areas 2,000 – Reduce exposure to solar over time 1,500 1,000 • Strong underlying markets and increased interest in silicon assets 500 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 • Attractive solution for Elkem – Part of a strong industrial structure with ambitions for growth and access to growth markets – Elkem will form the core of Bluestar’s Silicon business – Elkem’s head office and R&D department will remain in Norway 4 Sale of Elkem Conditional
    [Show full text]